UniSuper invests in sustainable Tasmanian plantation forest

We're pleased to let our members know about our new timber investment in Tasmania's largest hardwood plantation estate, Forico.

Forico is a leading sustainable timber producer consisting of approximately 90,000 hectares of productive plantation forest in Tasmania and a further 77,000 hectares of natural forests for conservation, biodiversity and cultural values.

As a key contributor to the supply of sustainable hardwood, Forico’s products are used in Australia and overseas to manufacture packaging, paper, tissue, and textiles.

Among the key infrastructure at the site are two wood processing mills, a seedling nursery, a fibre technology laboratory and port access. As a sustainable plantation Forico is certified under the internationally recognised Forest Stewardship Council and Responsible Wood schemes.

UniSuper acquired a 33% interest in Forico alongside two leading European pension funds—the UK’s Pension Protection Fund (PPF) and the Dutch pension fund ABP. Our investment forms part of our $15 billion private assets portfolio which targets high quality unlisted infrastructure and private equity assets. Forico sits within our Balanced, High Growth, Sustainable Balanced and Sustainable High Growth investment options.*

So, why have we invested in Forico?

Forico is an asset of scale and quality which complements our existing timber portfolio. Not only is it a portfolio diversifier as timber assets are generally less correlated to the markets, Forico also supports the global transition towards decarbonisation through carbon storage and use of sustainable timber material. Forico has a specialised team for the development of carbon projects and for the potential future income generation from carbon markets. We expect timber assets like Forico to benefit from demand for carbon credits as companies offset carbon emissions.

As active investors, UniSuper will work closely with Forico and our co-investors to develop the asset and we’ll be represented on the Board.

Our scale allows us to invest your superannuation in a range of unlisted assets which might not be available to smaller investors. You can read more about our investment approach here.

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*Past performance is not an indicator of future performance. Consider the Product Disclosure Statement (PDS), Target Market Determination (TMD) and your circumstances before making decisions, because we haven’t. Read the full disclaimer. Sustainable and environmental investing mean different things to different people. Visit our sustainable and environmental options page for more information on what sustainable and environmental investing means to us, our investment options and what our products invest in. Different products have different approaches.
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